In advance of an August 26^th hearing in the U.S. District Court for the district of Oregon, and an impending Federal Trade Commission hearing in October, the Kroger Company has released a list of facilities to be divested to obtain approval for the proposed merger with Albertsons Corporation.  It is intended to divest 579 Kroger and Albertsons stores across 18 states and Washington, D.C. 

Stores will include 124 in Washington, 91 in Colorado, 101 in Arizona and 63 in California.  In addition, the combination of the two chains will divest six distribution centers in western states to C&S Wholesale Grocers.  This company will license the Albertsons banner in California and Wyoming and the Safeway banner in Arizona and Colorado.  Kroger will be used for Albertsons and Safeway stores retained in the merger.  C&S will acquire the Haggen banner among others. C&S will pay Kroger and Albertsons $2.9 billion for the stores and other assets.

The merger is opposed by the Federal Trade Commission and the Attorneys General of eight Western states.  The United Food and Commercial Workers Union opposes the merger with five Locals contending that the intended divestment does not soften union opposition to the transaction.  In a joint statement the Locals noted, “We remain focused on stopping the proposed mega-merger for the same reason we have stated since it was first announced twenty months ago.”

To counter arguments that C&S Wholesale Grocers would be unable to manage 579 stores, Albertsons will detach Chief Operating Officer, Susan Morris, to serve as the President and CEO of the retail activities divested by Kroger and Albertsons.  Ms. Morris has served as Executive Vice President of Albertsons Corp. since January 2018 and is a 38-year veteran of retail grocery.  A graduate of Colorado State University, Ms. Morris is a recognized leader in the industry having risen from a customer service clerk to her current executive position.